[IT Donga x Ulsan City x Design-Led Manufacturing Innovation Center] The Korea Institute of Design Promotion has established the 'Ulsan Design-Led Manufacturing Innovation Center' at the University of Ulsan. It aims to enhance the design competitiveness of promising SMEs and startups. IT Donga introduces companies selected for the 'Ulsan Design-Led Manufacturing Innovation Project' and supports their scale-up.
Lee Yoo-bin, CEO of Second Closet / Source=IT Donga
Since the 1970s, the workwear market in South Korea has steadily grown alongside the manufacturing boom. However, even after half a century, the design, functionality, and supply methods of workwear have not significantly changed. Companies bear hidden costs such as laundry, repair, and replacement, beyond mere purchase, due to traditional practices.
A startup has emerged to address these inefficiencies, led by clothing design expert Lee Yoo-bin, CEO of 'Second Closet.' The company aims to transform the workwear market with its total solution for workwear rental and aftercare, 'THEREBY.'
From Clothing Designer to Workwear InnovatorCEO Lee Yoo-bin studied clothing design in South Korea before furthering her education and gaining practical experience in the UK. Despite building expertise in the apparel industry, she felt limited by merely creating and selling clothes.
"While working in the clothing market, I realized that simply making and selling clothes couldn't solve genuine social issues, corporate challenges, or customer needs. I envisioned a business that could address practical problems using my expertise," Lee Yoo-bin explained her motivation for starting the business.
She began her entrepreneurial journey in 2022 by enrolling in the Youth Startup Academy. Initially starting with a platform for reforming second-hand clothing, she identified issues in the workwear market over two years. After various attempts, including a reform business to solve inventory turnover problems and a storage service for travelers, she pivoted to the workwear market in 2024.
Notably, Lee Yoo-bin has experience wearing workwear daily during her two-year stint at Hyundai Heavy Industries, where she worked on piping to save for her studies abroad. "Workwear should be comfortable and safe for workers, yet its design and functionality have hardly changed since the 1970s. As a clothing designer, I wanted to apply these ideas to the industrial field," she recalled.
Second Closet showcases its self-developed functional workwear / Source=Second Closet
Differentiation with Worker-Friendly DesignSecond Closet sells its self-developed workwear both online and offline. Traditional low-cost workwear prioritized durability, leading to issues like poor sweat ventilation that hindered work efficiency. Second Closet's workwear addresses these problems with worker-friendly designs.
For instance, they added a three-dimensional pattern to the crotch area, often damaged during work, to enhance durability and comfort. They also included pockets for knee pads, allowing for safer and more comfortable work.
Utility pockets for convenient tool storage (left) and pockets for knee pads (right) / Source=Second Closet
Additionally, they feature utility pockets for convenient storage of various tools like measuring tapes and pens. Unlike traditional workwear with simple pockets, Second Closet's products consider the need to carry various tools on-site.
This product development was possible thanks to CEO Lee Yoo-bin's background in clothing design and her experience in the related industry. She actively participates in product design, incorporating feedback from the field.
Second Closet develops products reflecting field feedback / Source=Second Closet
"THEREBY to Stir New Winds in the Workwear Market"Second Closet's ultimate goal is to solve fundamental issues in the workwear market beyond mere sales. Although companies are the main consumers of workwear, traditional practices of simply purchasing workwear have been dominant. With limited suppliers, competition was not fierce, and there was little innovation in product improvement or distribution methods.
Second Closet offers a rental model different from the existing ones. The service, named 'THEREBY,' is a total solution combining workwear rental and aftercare. The name 'THEREBY' is an adverb in English, connecting cause and positive outcomes. The service aims to provide a more comfortable, safe, and efficient environment for workers.
While the traditional method of purchasing workwear might seem cheaper, Second Closet emphasizes that it is not. Companies need to have laundry or repair facilities and, in some cases, hire dedicated personnel, incurring significant costs. Although outsourcing these services is an option, it is not efficient.
Feeling of Wearing New Workwear Daily, Cost ReductionThe THEREBY service resolves these inefficiencies. Depending on the company's characteristics, it provides enough workwear for each worker to change into daily. With a system that collects worn workwear weekly, companies do not need to worry about managing laundry or repairs.
Workers feel like they are wearing clean workwear daily, significantly improving the work environment and enhancing corporate image. Additionally, they can choose from various functional workwear. This flexibility allows companies to adapt without discarding or replacing existing workwear if their business changes, emphasized CEO Lee Yoo-bin.
By eliminating the costs and efforts associated with purchasing or managing workwear, companies can focus on more productive tasks. It also contributes to the company's ESG management. ESG stands for Environment, Social, and Governance, key indicators for evaluating a company's sustainability. By using workwear made from eco-friendly materials and reducing harmful substances from laundry or disposal, companies can more easily meet ESG evaluation criteria.
Expansion Possible from Manufacturing to Food ServiceThe THEREBY service primarily targets the manufacturing industry, including petrochemicals. However, CEO Lee Yoo-bin emphasized that the business model is applicable to various industries requiring uniforms, such as food service and hotel services.
"There have been workwear rental or laundry services, but I believe we are unique as a total solution company offering manufacturing, rental, and aftercare of workwear," CEO Lee Yoo-bin highlighted the differentiation.
Lee Yoo-bin introduces the logo and packaging developed through the Ulsan Design-Led Manufacturing Innovation Center support project / Source=IT Donga
Finding Business Direction through Ulsan Design-Led Manufacturing Innovation Center Support Program
Regarding the challenges of running a startup, CEO Lee Yoo-bin stated, "Ultimately, a startup needs to be backed by rapid growth, and the most challenging part is finding what the market wants," adding, "It's important to seek the right path through quick verification of various attempts."
Regarding the Ulsan Design-Led Manufacturing Innovation Center support program, she said, "There wasn't such a program in Ulsan before, and it was great to receive a lot of preliminary education," adding, "There were hardly any programs offering support beyond simple packaging to brand building, branding, and marketing support." She particularly remembered the branding class. "It was essential education for startups, teaching how to sell in reality beyond just having technology and ideas," she emphasized.
With support from the Ulsan Design-Led Manufacturing Innovation Center, she collaborated with 'Brand Directors' (CEO Jeon Jin-soo), a brand development specialist company, for three months to develop logos and packaging. The gear-shaped logo intuitively signifies a brand related to the industrial field, while the atypical logo aims to capture industrial diversity. Tags, stickers, and packaging boxes for clothing were also developed to effectively convey the THEREBY brand identity.
CEO Lee Yoo-bin also mentioned that it helped in network formation. "I look forward to strengthening networks through meetings with various companies and institutions," she added.
Innovating the Workwear Market with Ulsan as a BaseRegarding choosing Ulsan as a business base, CEO Lee Yoo-bin explained, "Ulsan is considered an important base as it has the largest national industrial complex," adding, "There is a high demand for workwear due to various companies such as manufacturers, shipyards, automobiles, and petrochemicals." She also mentioned, "The market is large with various companies of different fields and sizes, and the availability of useful support programs is an advantage."
Regarding future plans, CEO Lee Yoo-bin stated, "THEREBY is a means to share my dream of applying ideas to the industrial field as a clothing designer and bringing about changes that help the world with various people," adding, "I ask for a lot of expectations."
The workwear market has been dominated by traditional practices, but Second Closet's THEREBY challenges this. With differentiated products developed based on the expertise and field experience of a clothing designer, and a new business model combining rental and aftercare, Second Closet's efforts to transform the workwear market are noteworthy.
IT Donga Reporter Kim Young-woo (pengo@itdonga.com)
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